U.S. corn futures inch up as grains face choppy trading day
* Markets experience volatile day
* Farmers will receive trade aid due to U.S.-China Trade war
(Updates prices, adds new comments, changes byline/dateline
from HAMBURG to CHICAGO)
By Barbara Smith
CHICAGO, July 23 (Reuters) - Chicago Board of Trade (CBOT)
grain futures see-sawed on Tuesday, as technical trading left
wheat prices flat, soybeans down and corn still stubbornly
CBOT corn futures ended the day on a positive note, but
hopes of a significant price rally were quashed by conflicting
cues that have left traders uneasy for weeks.
"The market feels very uncomfortable with the corn acres
estimates, the yields, the plant development of where we're at,"
said Don Roose, president of U.S. Commodities.
The supply side is bullish on corn, but current forecasts of
corn carryout are massive, "with the largest ending stocks in
U.S. corn since 1987," Roose said. "That means the trade is
CBOT September corn futures closed the day up 3-1/4,
at $4.25-1/2 a bushel - regaining some of its previous session's
Corn did find some underlying support from weather forecasts
of above-normal temperatures returning to much of the U.S.
Midwest next week, as well as a slight drop in corn conditions
late Monday, traders said.
The U.S. Department of Agriculture reported that 57% of U.S.
corn was in good to excellent condition, down from 58% last week
and below analyst expectations that it would stay at 58%.
Soybeans held steady, staying at 54%.
Some 69% of U.S. winter wheat was harvested, below market
expectations of 73% and the five-year average of 79%.
Traders also said they are closely watching the results of
USDA's resurvey this month of crop acreage in 13 states for corn
and 14 states for soybeans.
The survey, which is expected to wrap up this week, and its
findings are expected to be factored into the USDA's Aug. 12
supply and demand report.
"The markets are sort of waiting it out until then," said
Matt Connelly with Hightower Report.
Corn and soybean futures saw a flurry of midday trading,
after Agriculture Secretary Sonny Perdue announced that the U.S.
government will pay farmers hurt by President Donald Trump's
trade war with China a minimum of $15 per acre under an aid
package to be unveiled before the end of this week.
There is also a possibility for another two sets of aid if a
trade agreement is not reached by the fall, and 2020,
CBOT September wheat settled the day unchanged, at
$4.87-1/4 a bushel. CBOT August soybeans also settled down
2-1/2 cents, or 0.45% to $8.85-3/4 a bushel.
(Reporting by Barbara Smith in Chicago; editing by P.J.
Huffstutter and Jonathan Oatis)
First Published: 2019-07-23 03:02:45
Updated 2019-07-23 21:24:52
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